By: Michael Lauzon
April 24, 2014
Custom injection molder Precision Plastics Inc. is expanding its Columbia City, Ind., operation.
“We are adding warehouse space to expand the production floor by about 20 percent,” said Precision Executive Vice President Ryan Richey in a phone interview.
Ryan Richey said the company plans to purchase two or three injection presses with about 200 to 500 tons clamp force this year. It is looking at adding a few more later and could install presses with up to 750 tons of clamping force, depending on customer requirements. It now runs 28 presses with clamps from 75 to 500 tons.
“We had good sales in the past couple of years and see that continuing in the future,” Richey explained.
Precision will seek more growth in its key automotive and defense sectors and wants to enter new markets for stringent food-grade molded goods, such as special packaging. To enter such markets it would need to convert part of its production space to meet standards in cleanliness, pest and microbe suppression and other hygiene-related issues.
Precision expects to complete its 12,000-square-foot warehouse addition in June. The $265,000 project will free up molding room in its 75,000-square-foot Columbia City plant. It also runs a tool room in the factory.
Precision, founded in 1955, is a fully employee-owned business. It now employs 120 and plans to create 15 more positions in the next three years as it expands. Its injection molding sales volume is running at about $16 million annually and its tool room generates another $3 million in revenue.
“Our analysis shows that Indiana has a cost advantage over surrounding Midwestern states in our industry,” noted Precision President and CEO Ron Richey in a news release. A skilled workforce, business-friendly attitudes in the state and Indiana’s central location for U.S. and global markets also swayed Precision to expand in Columbia City, Ron Richey explained.
The Indiana Economic Development Corp. is offering Precision up to $65,000 in training grants conditional on its job creation. Columbia City is considering additional tax abatement.